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Gold/Mining/Energy : Solv Ex (SOLVD) -- Ignore unavailable to you. Want to Upgrade?

To: kimberley who wrote (5221)	12/22/1997 7:26:00 PM
From: norwalk hawk	Respond to of 6735

Something strange was going on today. I had an order to buy some shares of solvex at 75 but it never got filled. The stock traded quite a bit at 75 and even traded down to 5/8 but mine never got filled. Maybe the market makers were just playing around and trying to make it look like it was in trouble. Mike

To: kimberley who wrote (5221)	12/22/1997 8:05:00 PM
From: JJB	Read Replies (2) \| Respond to of 6735

Interesting story. Your friend might be confused, Koch has I believe given US $750,000 debtor in possession financing. Whether this would be a "big chunk" I don't know, or in the passing around it could have gotten exaggerated. Koch / Solv-ex is in the midst of securing an extension on Lease 5 outside Ft McMurray Alberta. This is a condition Koch stated must be fulfilled before they come through with C$ 30 million, which will pay off trade creditors. Solv-ex will still have approximately debentures $33 million Phemex (@32.50 a share) GFL $15 million (floorless at current price 15 million shares). This overhang (imo) explains current price. See how these deals can work. sec.gov One other floorless Reg S Kalimur has already redeemed $2,500,000 @ $2.78 = 910,860 shares received 10/15. Currently they are seeking $750,000 @ $1.41 = 547.507. Which leaves $1,750,000 to be redeemed. In my reading Solv-ex can repurchase Reg-S shares at a 20% premium. Conceivably Koch might be able to get their hands on enough shares to control a big chunk of company. Bankruptcy judge can increase shares without stockholder vote in chapter 11. Though Koch now controls 78% oil (and is finacincing Solv-ex 12%) Koch only will receive 25% of minerals and Solv-ex keeps 75%. I'm not sure if Solv-ex losses could be used by Koch (don't know their fiscal year to know if this would have a year end clock ticking) any bean counter guesses as to that? According to US bankruptcy trustee Koch have committed over US $1 billion to complete this development. At $30billion in annual sales that is not a stretch for them. jjb